Source: Company reports/Fung Global Retail & Technology

3Q16 RESULTS

eBay reported 3Q16 gross merchandise volume (GMV) of $20.1 billion, up 5% year over year on a currency-neutral basis and up 3% as reported. Revenues were $2.2 billion, slightly above the $2.19 billion consensus estimate; revenues were up 8% year over year on a currency-neutral basis and up 6% as reported. In the quarter, eBay added more than 1 million active buyers across its platforms, reaching a total of 165 million active users. Adjusted EPS was $0.45, beating the $0.44 consensus estimate and increasing by 3.3% year over year. GAAP EPS from continuing operations was $0.36. Non-GAAP EPS guidance was $0.42–$0.44.

RESULTS BY SEGMENT

• Marketplace—GMV was $19.0 billion in the quarter, up 5% on a currency-neutral basis and up 2% as reported, including growth from Marketplace Services and Other. Revenue was $1.8 billion, up 3% on a currency-neutral basis and up 1% as reported.
• StubHub—GMV was $1.1 billion, up 23% year over year, and revenue was $263 million, up 32% year over year, driven by strength in concerts, theater and baseball, as well as by ongoing product innovation.
• Classifieds—Revenue was $197 million, up 14% on a currency-neutral basis and up 11% as reported, driven by strength in the automotive and real estate verticals in several geographies.

OTHER DETAILS FROM THE QUARTER

Management characterized the third-quarter results as “good,” and commented that it remains focused on transforming the eBay shopping experience by adding more personalization and activating new brand messaging. The Marketplace business updated its mobile platform and introduced Quick Sale, a consumer destination for selling mobile phones. StubHub expanded its virtual-reality technology to more venues and also launched a ticket program for primary and secondary tickets for the Philadelphia 76ers. The Classifieds segment began integrating tickets from StubHub Canada and integrating eBay inventory from several markets. The company continues to make acquisitions in new geographic areas and industry verticals, most recently signing an agreement to acquire Corrigon, a developer of visual search technologies.

OUTLOOK

For the full year, eBay expects revenues of $8.95–$9.0 billion, representing currency-neutral growth of 6%–7%, in line with or above the consensus estimate of $8.95 billion. The company also expects non-GAAP EPS of $1.85–$1.90, in line with the consensus estimate of $1.88, and GAAP EPS of $2.22–$2.32. Non-GAAP EPS guidance was unchanged; prior guidance for GAAP EPS was $1.60–$1.65. In its fiscal fourth quarter, the company expects revenues of $2.36–$2.41 billion, representing currency-neutral growth of 4%–6%, in line with the consensus estimate of $2.40 billion. eBay also expects non-GAAP EPS of $0.52–$0.54, in line with or below the consensus estimate of $0.54. The company expects GAAP EPS of $1.05–$1.15.